# Question

Reboot, Inc. is a manufacturer of hiking boots. Demand for boots is highly seasonal. In particular, the demand in the next year is expected to be 3,000, 4,000, 8,000, and 7,000 pairs of boots in quarters 1, 2, 3, and 4, respectively. With its current production facility, the company can produce at most 6,000 pairs of boots in any quarter. Reboot would like to meet all the expected demand, so it will need to carry inventory to meet demand in the later quarters. Each pair of boots sold generates a profit of $20 per pair. Each pair of boots in inventory at the end of a quarter incurs $8 in storage and capital recovery costs. Reboot has 1,000 pairs of boots in inventory at the start of quarter 1. Reboot’s top management has given you the assignment of doing some spreadsheet modeling to analyze what the production schedule should be for the next four quarters and make a recommendation.

(a) Visualize where you want to finish. What numbers will top management need? What are the decisions that need to be made? What should the objective be?

(b) Suppose that Reboot were to produce 5,000 pairs of boots in each of the first two quarters. Calculate by hand the ending inventory, profit from sales, and inventory costs for quarters 1 and 2.

(c) Make a rough sketch of a spreadsheet model, with blocks laid out for the data cells, changing cells, output cells, and objective cell.

(d) Build a spreadsheet model for quarters 1 and 2, and then thoroughly test the model.

(e) Expand the model to full scale and then solve it.

(a) Visualize where you want to finish. What numbers will top management need? What are the decisions that need to be made? What should the objective be?

(b) Suppose that Reboot were to produce 5,000 pairs of boots in each of the first two quarters. Calculate by hand the ending inventory, profit from sales, and inventory costs for quarters 1 and 2.

(c) Make a rough sketch of a spreadsheet model, with blocks laid out for the data cells, changing cells, output cells, and objective cell.

(d) Build a spreadsheet model for quarters 1 and 2, and then thoroughly test the model.

(e) Expand the model to full scale and then solve it.

## Answer to relevant Questions

The Fairwinds Development Corporation is considering taking part in one or more of three different development projects— A, B, and C—that are about to be launched. Each project requires a significant investment over the ...Refer to the spreadsheet file named “Everglade Problem 21-9” contained in the Excel files for this chapter on the book’s website. This file contains a formulation of the Everglade problem considered in this chapter. ...Bill Fredlund, president of Lincoln Log Construction, is considering placing a bid on a building project. Bill has determined that five tasks would need to be performed to carry out the project. Using the PERT three-estimate ...Consider the scenario described in Prob. 10.8-3. (a) To prepare for analyzing the effect of crashing, find the earliest times, latest times, and slack for each activity when they are done in the normal way. Also identify the ...You are given the following information about a project consisting of six activities: (a) Construct the project network for this project. (b) Find the earliest times, latest times, and slack for each activity. Which of the ...Post your question

0